Contact Information: Contact: For Onex Corporation: Timothy Duncanson (416) 362-7711 (212) 582-2211 For Wellspring Capital: Steve Lipin or Melissa Daly Brunswick Group (212) 333-3810
Wellspring Capital Management Sells Tube City IMS Corporation to Onex Partners
| Source: Wellspring Capital Management
NEW YORK, NY -- (MARKET WIRE) -- November 10, 2006 -- Wellspring Capital Management LLC
("Wellspring") announced today that it has entered into a definitive
agreement to sell all of the outstanding shares of Tube City IMS
Corporation ("Tube City IMS"), for total cash consideration of $620 million
on a cash and debt free basis to Onex Partners, a $3.5 billion
private-equity fund managed by Onex Corporation.
Tube City IMS operates at 66 steel mills throughout the U.S., Canada and
Europe, providing raw materials procurement, scrap and materials
management, and slag processing services. Headquartered in Glassport, PA,
Tube City IMS employs approximately 2,350 people.
"Tube City IMS' strong management team, world-class operations and
compelling growth characteristics drove our interest in the Company, and
this transaction represents a favorable outcome for Wellspring," said Carl
Stanton, a Wellspring partner. "We wish Tube City IMS and their new
partners continued success."
"We have found an exceptional and strong management team at Tube City IMS,"
said Tim Duncanson, an Onex Managing Director. "The company is the largest
outsourced provider of these services in North America and the team has
positioned Tube City IMS to become the global leader. We're excited to
partner with them and work together to achieve this goal."
Michael Coslov, Chief Executive Officer of Tube City IMS, said, "Wellspring
was an excellent partner and provided us with the financial and strategic
support we needed to establish our market leadership position."
"We are excited to have found in Onex a partner that shares management's
vision to grow and expand the business," added Mr. Coslov.
The acquisition is subject to customary conditions and is expected to close
early in 2007.
About Wellspring Capital Management
Founded in 1995, Wellspring Capital Management LLC is a New York-based
private equity firm with more than $2 billion in equity capital under
management. The firm takes controlling positions in promising middle-market
companies where it can realize substantial value by contributing innovative
operating and financing strategies and capital. Wellspring's limited
partners include some of the largest and most respected institutional
investors in the United States, Canada, and Europe. Wellspring Capital's
current portfolio includes investments in food distribution, for-profit,
post-secondary education, golf retail, steel servicing, and other
industries. For more information visit Wellspring Capital's website at
www.wellspringcapital.com.
About Tube City IMS
Tube City IMS Corporation, based in Pennsylvania, is a leading provider of
outsourced services to the global steel industry. Tube City IMS operates at
66 steel mills throughout the U.S., Canada and Europe. With roots stemming
back to 1926, the Company offers its customers the broadest array of
services in the industry, including materials procurement, supply chain
management, melt shop services and finished product handling. For more
information, visit: http://www.tubecityims.com/.
About Onex
Onex manages third party private equity investments through the Onex
Partners and ONCAP family of funds. It also manages a real estate fund and
a public market fund. Through these activities Onex generates annual
management fee income and earns a carried interest on approximately US$3.5
billion of third party capital.
Onex is a diversified company with annual consolidated revenues of
approximately $19 billion and consolidated assets of approximately $15
billion. Onex is one of Canada's largest companies with global operations
in service, manufacturing and technology industries. Onex shares trade on
the Toronto Stock Exchange under the stock symbol OCX.